August 25, 2003

 

 

China Soybean Futures Settle Mixed; Longs Sell Sep Contract

 

China's Dalian Commodity Exchange soybean futures settled mixed Monday, with some institutional long position holders liquidating the nearby September contract.

 

The September contract, which already feel sharply during the past three consecutive trading days, lost another 30 yuan ($1=CNY8.28) a metric ton to CNY2,600/ton.

 

Traders said the recent declines in that contract confused many market participants, leading them to adopt a wait-and-see stance.

 

"Long liquidation at this time may be interpreted as profit-taking, but still needs close observation," said a trader at Shanghai Dalu Futures.

 

"Fundamentally, soybean futures should have risen because the government is trying to limit soybean imports" which tend to influence local prices but are vital to the domestic market, he added.

 

Besides the September 2003 contract, three others slid CNY1-CNY3/ton. The four gainers include the most heavily traded January 2004 contract, which inched up CNY5/ton to CNY2,496/ton.

 

The January 2005 contract saw no trade throughout the day.

 

Meantime, soymeal futures settled mixed in lackluster trade.

 

The benchmark January 2004 soymeal contract stood unchanged at CNY2,137/ton, after trading between CNY2,129/ton and CNY2,145/ton.

 

Trading volume in Dalian soybean futures market declined to 393,672 lots from Friday's 498,790 lots. Open interest was 738,062 lots, lower than Friday's 747,508 lots.

 

One lot is equivalent to 10 tons.